00:00 Speaker A
AMD reports, stock surges. What’d you make of that print?
00:03 Speaker B
I mean, I so, I had written something a few months ago, right? And by a few, I mean two.
00:10 Speaker B
Basically saying that the CPU was, we talked about it, back in vogue, right? And lo and behold,
00:14 Speaker A
And there were skeptics.
00:15 Speaker B
There were. They were. Yeah. They were.
00:17 Speaker A
And you know what I say to that?
00:18 Speaker B
Mhm.
00:19 Speaker B
nothing. I don’t know.
00:21 Speaker A
Look at the chart. That’s what you say to that.
00:22 Speaker B
Read read uh read the the results. Read it and weep.
00:24 Speaker A
Read and look at the chart.
00:25 Speaker B
Uh I mean, yeah, they actually they they they completely blew it away. Uh I think what was the the number that Lisa Sue had said? 70% growth in Q2 is what she’s expecting out of their uh CPU server side of the business, 70% year over year growth. They also said that they were going to see a uh uh annually, they were expecting 18% growth over the next three to five years. That’s now jumped to 35%. And so this is just part of this whole push to agentic AI where you’re seeing these these systems perform tasks that CPUs are good at. And so naturally CPUs are going to become more important. Does this last forever? Great question that you did not ask me just now, but I’d like to say, you were.
01:07 Speaker B
I don’t know because we’ve continuously seen these different permutations of the AI trader or the AI infrastructure build out where, you know, uh CPUs were just left by the wayside and now they’re they’re hot again. GPUs, oh nobody needs those anymore because we’re going to be going into more training, more inferencing rather. Well, hold on. See GPUs are good at training, but what about these ASICs like the CPUs that Google has or you know, trainium uh chips that that Amazon has. So it’s constantly changing and evolving. So I don’t know how long this lasts. They’re saying at least into 2027 where they’ll have where they’ll have this demand. And I think that again goes back to where I was saying, we don’t necessarily know if these, you know, how fast these data centers are being stood up and then what that means for the semiconductor companies themselves. So I I I, you know, I I I do think though that for now at least, the CPU continues to be a hot product.
01:54 Speaker A
How competitive would you say AMD’s AI roadmap now is with Nvidia with of course Nvidia earnings on deck for May 20th.
02:02 Speaker B
I think Nvidia’s still, you know, the 800 pound gorilla in the room, right? I mean, they’re four, five trillion, five trillion I think now, uh billion dollar trillion dollar gorilla in the room. I do think uh they’re becoming with the release of their upcoming uh rack server, they’ll be a lot more competitive. It’s called Helios. That’s coming in the second half of this year and basically, you know, Nvidia talks about their their rack servers, their their NVL 72, right? That’s their their big bad boy that you see come out on stage. Now it’s like a one to two tons or or I forget what Jensen says. Uh AMD didn’t have something like that and now they’re going to have something like that in Helios. It’ll have 72 uh uh uh GPUs in there. It’ll essentially functionally be the same uh as what Nvidia has. And so that’ll make them a lot more uh competitive in this this landscape. What does that mean for Intel? Well, they’re still the CPU behemoth, uh but they don’t have that GPU side. So AMD’s lucky that they get to play in in both ends of this, but there’s also Arm. Those Arm chips are coming and you know, we’re starting to see more of those. That’s Nvidia has an Arm CPU. Uh Qualcomm is going further into the data center. That’s an Arm CPU. So there’s a lot of competition starting to bubble up between not just GPUs but CPUs as well.
